Analysts at TD Securities point out that the Riksbank meets today for the first time in over two months, but they don’t expect the picture to have changed much since the April meeting.
Key Quotes
“Overall, we look for the Riksbank to keep its policy rate forecasts little change from those published in April, with a rate hike still forecast for Q4 of this year. However, with the latest Bloomberg survey showing analysts split almost 50-50 around expectations of a rate hike by year-end, and particularly after the recent dovish ECB decision, we think that markets may see this in a hawkish light, similar to the reaction to last month’s Norges Bank decision.”
“While not quite as hawkish as their Norwegian peers, a rate hike before year-end would still leave the Riksbank raising rates well ahead of the ECB.”
“Aside from the Riksbank decision, we also have several speaking appearances from af Jochnick and Skingsley over the next two days as they take part in the Almedalen politics week conference.”
“UK: We’re in line with consensus in looking for the construction PMI to hold steady at 52.5 in June. This leaves it sitting about 1pt above its average level over the last two years.”
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